Trading the News
Trading the news–good idea or not?
What is meant by trading the news? Well, even if you’re a beginning Forex trader, you will be aware that certain global announcements can impact the movement of currencies. So, trading the news begins with following the schedule of those releases. This can be found easily at many websites such as www.forexfactory.com or www.investing.com, my favorites.
As you can see in the above image, there are only 2 major impact releases on that particular day. Some days there aren’t any releases at all and some days there are quite a few. Just check the schedule once per day and you can decide whether or not you want to trade at that particular time.
After deciding which release you want to trade, you will need at least 15 minutes to prepare. These data items are released at precisely the time stated (usually) and the impact for high impact releases can be quick and substantial. Usually the impact only lasts for a few minutes, but sometimes the trend can continue for a couple of hours. Suffice it to say that this type of trading is fast and furious and not for the faint hearted. Always trade small lot sizes and be prepared to exit if things go wrong. You should NEVER hold on to a big loss and think that things will somehow come right again! Trading has substantial risk and you should never risk more than you are willing to lose. Forex is very lucrative and can provide substantial extra income. But, it requires skills, knowledge and experience to trade consistently and profitably.
There is way too much information that needs to be taught regarding trading these releases that can be taught in a single post. That’s why I teach a course which includes extensive details about this type of trading with live workshops. For more information about those courses, watch the video at www.desire2change.com/videos